Dollar jumps after NFP

 

 

“If you want your children to turn out well, invest twice as much time with them and half as much money.” Abigail Van Buren

 

MARKET NEWS

 

USD/JPY jumps to the 109.30 area, highest in almost three weeks – FX Street

 

The USD/JPY broke back above 109.00 and jumped to 109.35, hitting the highest level since April 13. The rally of the USD/JPY took place even as US yields remain steady. The 10-year stands at 1.63%.

 

USD/CAD Forecast May 3-10 – Canadian dollar surges to 3-year high - Forex Crunch 

 

USD/CAD dropped to its lowest level since February 2018 last week, as the pair fell 1.57%. For the Canadian dollar, it was its strongest weekly gain this year.

 

AUD/USD drops to fresh weekly lows near 0.7700 on broad USD strength – FX Street

 

The USD's market valuation continues to drive AUD/USD's movements ahead of the weekend. Boosted by upbeat macroeconomic data releases and month-end flows, the US Dollar Index climbed to its highest level since April 23 at 91.28

 

After ‘Leverage Wipeout’, Bitcoin Rises Again With $60,000 In Sight - Forbes

 

Since Bitcoin’s all-time highs two weeks ago, when it broke through $60,000, the open interest in Bitcoin futures has fallen by $8,912,806,107 across all major exchanges.

 

Stocks fall on Friday, but S&P 500 gains 5% in April

 

The major averages slipped on Friday as investors took profits amid a flurry of earnings results and a robust profit beat from e-commerce giant Amazon. Despite Friday’s weakness in equities, the S&P 500 notched its third straight month of gains in April, adding more than 5% to the index.

 

Warren Buffett: Zero interest rates have created a 'sea change' in finance – Yahoo! Finance

 

“It causes stocks to go up, it causes business to flourish, it causes an electorate to be happy, and we'll see if it causes anything else,” Buffett said at Berkshire Hathaway’s annual shareholder meeting.

 

MORE HEADLINES

 

•    U.S. Treasury's Yellen tamps down inflation fears over Biden spending plan – Reuters
•    Yellen defends higher taxes as necessary to contain deficit - FT
•    Britain to send 1,000 more ventilators to India – Reuters
•    SpaceX has safely landed 4 astronauts in the ocean for NASA, completing the US's longest human spaceflight – Business Insider
•    Charlie Munger says bitcoin’s rise ‘disgusting and contrary to interests of civilization’ – Market Watch
•    Spac share prices slump as enthusiasm wanes - FT
•    U.S. to discuss wider Covid vaccine distribution as India calls for lifting of patent protections - CNBC

 

ANALYSIS

 

EUR/GBP: Choppy trading in the coming months, a move to 0.84 by year-end – Rabobank

 

“While there is scope for optimism on the economic front, the pound is confronted by a round of headlines regarding sleaze in government circles. This means that politics still has the capacity to knock confidence in the pound, just as the electorate prepares for the May 6 local English, Mayoral and Welsh and Scottish parliamentary elections.”

 

Fed’s Dovish Tilt to Unleash Tide of Bets on Resurgent Euro - Bloomberg

 

“It is clear that Fed monetary withdrawal is off the agenda anytime soon, capping the upside on U.S. yields and helping euro-dollar bulls,” said Bloomberg Intelligence’s chief G-10 FX strategist Audrey Childe-Freeman.

 

Exxon, Chevron Earnings Preview: Improving Cash To Secure Dividends, Cut Debt

 

The recovery in oil prices over the past year has eased financial pressures on big producers, who suffered one of their worst annual performances in decades during the pandemic.

 

CHART

 

AUD/USD – Daily Candlesticks

 

  
Source: GKFX Prime Metatrader 4 

 

A second failure at the 0.782 level could be the formation of a second right shoulder and mean the Head & Shoulders top pattern is still in play. - Prepared by Trading Writers*

 

CALENDAR

 

*Times in GMT

 

 
Source: FX Street Economic Calendar

 

Footnotes

 

1.    https://www.fxstreet.com/economic-calendar
2.    https://www.fxstreet.com/news/aud-usd-drops-to-fresh-weekly-lows-near-07700-on-broad-usd-strength-202104301631
3.    https://www.fxstreet.com/news/eur-gbp-choppy-trading-in-the-coming-months-a-move-to-084-by-year-end-rabobank-202104301621
4.    https://www.fxstreet.com/news/usd-jpy-jumps-to-the-10930-area-highest-in-almost-three-weeks-202104301616
5.    https://www.investing.com/news/economy/us-treasurys-yellen-tamps-down-inflation-fears-over-biden-plan-interview-2492263
6.    https://www.investing.com/news/world-news/britain-to-send-1000-more-ventilators-to-india-2492297
7.    https://finance.yahoo.com/news/warren-buffett-zero-interest-rates-have-created-a-sea-change-in-finance-125816914.html
8.    https://www.businessinsider.com/spacex-lands-4-astronauts-for-nasa-spaceflight-record-2021-4? 
9.    https://www.forexcrunch.com/usd-cad-forecast-may-3-10-canadian-dollar-surges-to-3-year-high
10.    https://www.cnbc.com/2021/05/02/covid-vaccine-us-to-discuss-wider-distribution-as-india-calls-for-lifting-patent-protections.html
11.    https://www.ft.com/content/f8a154ee-2fe9-42c7-9fe0-1786f846150e
12.    https://www.ft.com/content/c7c0f11c-b678-491d-9173-fe49ea29b4b8
13.    https://www.forbes.com/sites/kenrapoza/2021/05/02/after-leverage-wipeout-bitcoin-rises-again-with-60000-in-sight/?sh=57af286e49be
14.    https://www.forbes.com/sites/kenrapoza/2021/05/02/after-leverage-wipeout-bitcoin-rises-again-with-60000-in-sight/?sh=57af286e49be
15.    https://www.bloomberg.com/news/articles/2021-05-02/fed-s-dovish-tilt-to-unleash-tide-of-bets-on-resurgent-euro?srnd=markets-vp
16.    https://www.investing.com/analysis/exxon-chevron-earnings-preview-improving-cash-to-secure-dividends-cut-debt-200576020
17.    https://www.cnbc.com/2021/04/29/stock-market-futures-open-to-close-news.html